Daily US Equity Opening News - Chinese AI stocks fall amid probe; MSFT plans deeper Copilot discounts; BABA expands data centre capacity; QCOM unveils 2nm chip; Jana urges FUN to explore sale; KBH falls after weaker housing demand & orders

DAY AHEAD:

• EVENTS: US President Trump will host arrival ceremony for Chinese President Xi at 18:00EDT/23:00BST. The UN General Assembly continues: President Trump meets Pakistan’s PM Sharif on the sidelines, Iranian President Pezeshkian addresses the floor. Senior Iranian leaders hold talks with Oman, Qatar and Gulf counterparts.
• DATA: In Europe, Eurozone flash PMI is expected to see the composite at 51.7 (prev. 52.0), services at 51.5 (prev. 51.6), and manufacturing at 52.6 (prev. 52.7); UK composite is expected at 52.0 (prev. 52.5), and services at 52.0 (prev. 52.5); Germany composite is seen at 51.8 (prev. 51.8), and services at 50.0 (prev. 49.7); France composite is seen at 49.1 (prev. 48.5), and services at 48.4 (prev. 48.0); US flash composite at 55.2 (prev. 56.0), services at 56.0 (prev. 56.5) and manufacturing at 53.6 (prev. 53.9). Weekly US MBA mortgage applications data are also due (prev. -4.1%; 30-year rate prev. 6.97%).
• CENTRAL BANKS: ECB’s Lane (dovish) delivers a lecture (slides released); ECB’s Cipollone gives panel remarks (slides released); ECB’s Vujcic (neutral) participates in a fireside chat; Fed’s Barr (neutral) speaks on housing; Fed’s Goolsbee (2027 voter) will give a podcast interview. South Africa’s SARB expected to hike 25bps to 7.25%.
• SUPPLY: US sells USD 70bln of 5yr notes, USD 28bln of 2yr FRNs, and conducts a 20–30 year liquidity support buyback announcement. Germany auctions EUR 2bln of 2047, and 2056 debt.
• ENERGY: EIA releases weekly energy inventories; afterhours on Tuesday, API data reportedly showed headline crude stocks posting a surprise build of +1.8mln bbls (exp. -0.6mln), Cushing building by +2.1mln bbls, gasoline stocks posting a surprise draw of -2.2mln bbls (exp. +0.2mln), and distillate inventories posting a larger than expected draw of -2.2mln bbls (exp. -0.5mln).

GEOPOLITICS:

• US-Iran - President Trump said he thinks a settlement will be reached with Iran, noting US officials met the Iranian delegation for three hours in a productive meeting, with another scheduled soon. Envoys Witkoff and Kushner met Iran mediators, and Trump said there is momentum for a deal, though warned there will be a point when it’s too late and that the US may attack if it sees activity at Pickaxe Mountain. A US source said the chance of a deal remains limited, with major disputes unresolved.
• US-Iran - US-Iran talks in New York addressed restarting negotiations and reopening the Strait of Hormuz, with no agreement on most disputes but further engagement possible, according to Al Arabiya. Iranian sources said Tehran’s positions remain unchanged and future talks require US commitments, practical assurances and acceptance of Iranian conditions.
• N.Korea - South Korean President Lee Jae Myung and US President Trump agreed to coordinate closely on restarting dialogue with North Korea. Trump again expressed willingness to engage Kim Jong Un, while both leaders said they would remain in close communication to pursue talks with Pyongyang and sustainable peace on the Korean peninsula.
• US-Ukraine - Ukrainian President Zelensky asked President Trump for a winter military package including Patriot systems, and expects a push for an energy ceasefire, according to the WSJ.
• EU-Ukraine - EU officials told Ukraine that further funding depends on progress on legislation targeting the shadow economy, tax revenues and alignment with EU law. Ukraine is seeking help to cover a EUR 26bln budget gap, and also is looking for a quicker disbursement of a EUR 90bln loan; President Zelensky has also requested additional Patriot missiles and production licences.

TRADE:

• US-S.Korea - The US and South Korea reported significant progress on implementing a USD 350bln investment deal. The first project is a USD 22.3bln Texas gas-fired power development involving Related Companies, NextEra Energy (NEE) and Lewis Energy Group. Nuclear reactors and an Alaska LNG pipeline remain under review, subject to South Korean approval and commercial viability.
• US-Australia - The US criticised Australia’s proposed digital duty of care law, warning it could facilitate censorship and burden US companies. The plan would require online services to protect under-18s and let users opt out of algorithmic feeds. PM Albanese said the measure aims to give users greater control rather than government control, Bloomberg reports.

MACRO:

• Fedspeak - NY Fed’s Perli (not a monpol official) said reserve management purchases are not on a preset course, the Fed’s forecasting process is robust, and its monetary-policy toolkit is working well. He added that central clearing of Fed repo operations could provide benefits.
• UK Forecasts - A UK Treasury Committee urged the Office for Budget Responsibility to add 10yr economic and fiscal forecasts to encourage longer-term policymaking, according to Bloomberg. The cross-party committee said this could help shift focus from electoral cycles toward investment whose benefits emerge over several years, while stopping short of extending fiscal rule assessments to the same horizon.

TECH:

• China AI - Overnight, Chinese AI stocks fell after a report that regulators opened a data security probe into DeepSeek and Moonshot AI, resulting in Z.AI, MiniMax and Alibaba declining; Xiaomi and Tencent also fell amid concerns that Beijing could intensify scrutiny of the AI sector.
• Microsoft (MSFT) - Microsoft agreed to maintain current shareholder-proposal eligibility thresholds for one year, covering the next proxy cycle through its 2027 annual meeting, according to Reuters. The agreement with activist Paul Chesser comes as the SEC considers ending federal oversight of shareholder resolutions and shifting responsibility to states.
• Microsoft (MSFT) - Microsoft plans to increase Copilot discounts as it launches an AI “super app”, according to The Information. The move comes as software companies use discounts to retain customers amid competition from Anthropic and OpenAI.
• Qualcomm (QCOM) - Qualcomm unveiled Snapdragon 8 Elite Gen 6 Android chips built on TSMC’s (TSM) 2nm process and optimised for on-device AI. Premium smartphones from Motorola (MSI), Xiaomi (XIACY) and ZTE will use the chips. The Extreme version can run models with 30bln parameters.
• SoftBank (SFTBY) - SoftBank launched its high-yield bond sale for more than USD 11bln to help fund AI investments, with the group having commitments nearing USD 65bln to OpenAI. The offering includes USD 10bln of USD bonds, and EUR 1bln of EUR notes; dollar yields marketed at record levels for SoftBank. Separately, SoftBank-backed SB Energy plans to begin marketing its IPO once SEC review of its filing is complete.
• Anthropic, Apollo Global Management (APO) - Anthropic is in early talks to lease up to 1GW of compute capacity from Apollo-backed Stream Data Centres, potentially reducing reliance on cloud providers, The Information reports. The proposed sites would use tensor processing units designed by Broadcom (AVGO) and Google (GOOG), with Anthropic acting as a direct tenant.
• IonQ (IONQ) - IonQ demonstrated an end-to-end real-time quantum error-correction decoder running on a single standard CPU. The system was validated across hundreds of logical qubits and millions of logical operations. IonQ said the approach avoids classical processing bottlenecks, and provides a practical path toward commercial-scale fault-tolerant quantum computing.

COMMUNICATIONS:

• Warner Bros Discovery (WBD), Versant Media (VSNT), Axel Springer - The DoJ urged a federal judge to reject CNN, MS Now and Politico’s request to restore White House press access. The administration argued the ban is lawful on national security and professionalism grounds. The outlets are suing, saying the ban violates the First Amendment. A hearing is scheduled for Wednesday.
• Angi (ANGI) - Angi named Michael Steib CEO, succeeding Jeff Kip immediately, as the home-improvement platform shifts toward AI. Steib said AI will improve products and profitability could strengthen near term.

CONSUMER CYCLCICAL:

• Alibaba (BABA) - Alibaba will open cloud regions in Turkey, Finland and the Netherlands and expand data centre capacity in Malaysia, Germany, the UAE, France and Hong Kong, Bloomberg reports. The expansion supports its planned 20GW global network by 2032, and follows a USD 53bln three-year AI investment plan.
• General Motors (GM) - General Motors CEO Mary Barra is expected to attend President Trump’s White House state dinner for Chinese President Xi, Reuters reports. Stellantis (STLA) CEO Antonio Filosa will not attend, while Ford (F) declined to comment on its CEO Jim Farley. Executives from Meta (META), Apple (AAPL), Amazon (AMZN) and Tesla (TSLA) are also expected to attend. Separately, General Motors said it remains on track with the higher end of its range as Q3 nears completion; sees no trigger to halt share repurchases, and remains committed to buybacks.
• China Autos - Chinese automakers captured nearly 12% of European new vehicle sales in August, according to Dataforce. They accounted for one in four hybrid sales, and one in three plug-in hybrids. Battery and hybrid demand rose 27%, lifting the overall market 4.6%. Chinese brands reached 6.4% share in Germany and over 20% in the UK.
• KB Home (KBH) - Shares fell 1.3% in extended trading after it reported weaker housing demand, lower deliveries and orders, and softer housing conditions, which outweighed an earnings beat; its Q4 guidance also implies continued affordability and mortgage rate pressure. Q3 EPS 1.05 (exp. 0.88), Q3 revenue USD 1.3bln (exp. 1.3bln). Homes delivered -19% Y/Y to 2,732, with average selling price USD 473,000 (vs USD 475,700 Y/Y); net orders -12% to 2,604, monthly net orders per community fell to 3.1 (from 3.8), and cancellation rate rose to 18% (from 17%). Ending backlog +2% to 4,398 homes, and backlog value +3% to USD 2.05bln, while ending community count +5% to 277. Execs said housing conditions weakened since June amid higher mortgage rates and affordability pressure, while Built to Order homes reached nearly three-quarters of Q3 deliveries. The company continues its share repurchase programme and quarterly dividend. Sees Q4 housing revenue between USD 1.45-1.65bln (exp. 1.61bln), deliveries between 3,000-3,500 homes, housing gross margin between 16.0-16.6%, SG&A between 10.3-10.9% of revenue, and ending community count between 270-275. Maintains FY26 housing revenue view between USD 4.9-5.1bln (exp. 5.1bln), deliveries between 10,500-11,000 homes, housing gross margin between 16.0-16.2% (prev. saw 16.1-16.5%), and SG&A between 11.5-11.7% of revenue.
• Six Flags Entertainment (FUN) - Activist investor Jana Partners is urging Six Flags Entertainment to hire banks and explore a sale, according to WSJ. Jana cited disappointment with Q2 results after Six Flags’ net loss widened. Jana previously held about a 9% stake, and had pushed for operational and strategic changes.
• Prediction Markets - The CFTC warned that prediction-market “mention” bets carry heightened manipulation risks and should only be offered in limited circumstances. The guidance calls for safeguards, surveillance and controls, citing risks from access to scripts or unpublished remarks.

CONSUMER DEFENSIVE:

• Interparfums (IPAR), Puma (PUMSY) - Interparfums entered an exclusive worldwide licence agreement with Puma to create, develop, produce and distribute fragrances under the Puma brand. The agreement runs through December 2037. Interparfums plans to launch a signature lifestyle fragrance in 2027. Diageo (DEO) - Diageo confirmed the appointment of WPP’s (WPP) Joanne Wilson as CFO; she is expected to join sometime in 2027.

FINANCIALS:

• JPMorgan (JPM) - JPMorgan explored allowing outside funders to approve some rejected co-brand credit-card applications, potentially opening the door to private credit, WSJ reports. Blue Owl (OWL), Blackstone (BX), KKR (KKR) and Sixth Street (TSLX) were among firms approached. The idea remains preliminary, and JPMorgan said it has no plan to launch a second-look programme.
• Apollo Global Management (APO) - Apollo capped redemptions from its USD 26bln Apollo Debt Solutions BDC at 5% for a third consecutive quarter after investors requested withdrawals equal to 14.7% of outstanding shares (vs 16.8% in the prior quarter), according to Bloomberg. Separately, Apollo-backed Atlas SP Partners could recover only GBP 107-200mln of roughly GBP 970mln owed by two collapsed Market Financial Solutions entities; Atlas said it has already accounted for potential losses.
• UBS Group (UBS) - Switzerland’s upper house backed requiring UBS to fund 90% of its foreign-unit value with CET1 capital. The plan is below the government’s proposed 100% but tougher than UBS’ preferred AT1-based compromise. The bill now moves to the lower house, with a final decision unlikely before 2027.
• UK Banks - Global banking executives warned that a UK windfall tax or higher sector taxes could lead banks to divert investment away from the UK, according to the FT.
• Ether - Kalshi’s ether perpetual-futures market drew regulatory scrutiny after nearly 1mln trades clustered around USD 5.5K, accounting for over USD 5bln of volume, according to the WSJ. The CFTC is examining the activity. Kalshi said it found no evidence of wash trading, and attributed the pattern to market-making incentives.

REAL ESTATE:

• Digital Realty Trust (DLR) - Digital Realty plans to develop a new cable landing station at its LAX12 Los Angeles data centre with Assured Communications. The project will integrate subsea and terrestrial networks, providing cable operators access to networks, cloud providers and carriers across Digital Realty’s campus. It is expected to begin supporting cables in 2028.

ENERGY:

• China Crude Imports - Goldman Sachs said China’s oil imports are expected to rise only moderately, by about 600K BPD Q/Q in Q4; imports would remain about 3mln BPD lower Y/Y. Goldman said it sees Middle East supply disruptions, rather than stronger Chinese buying, as the main upside risk to oil prices.
• Iraq Production - Iraq exported 70mln bbls of oil in August and is currently shipping more than 3mln BPD, its oil minister said. Road transport from southern fields to Kirkuk is expected to lift exports via Turkey’s Ceyhan port above 600K BPD, while Iraqi Kurdistan production is currently around 200K BPD.
• US Home Heating Oil Reserve - Senators Susan Collins and Angus King urged President Trump to release oil from the Northeast Home Heating Oil Reserve to ease high prices. The reserve holds just over 1mln bbls, amid US distillate inventories at seasonally record-low levels.
• Weekly Inventories - Weekly API inventory data reportedly showed headline crude stocks posting a surprise build of +1.8mln bbls (exp. -0.6mln), Cushing building by +2.1mln bbls, gasoline stocks posting a surprise draw of -2.2mln bbls (exp. +0.2mln), and distillate inventories posting a larger than expected draw of -2.2mln bbls (exp. -0.5mln).
• Shell (SHEL), Talos Energy (TALO) - Shell completed the sale of its 50% non-operated interest in the Na Kika platform and associated fields, plus its 100%-owned Coulomb tieback, to Talos Energy and Ridgewood Energy. Shell received about USD 840mln in cash proceeds, reflecting adjustments from the 1st July 2025 effective date through closing.
• Iberdrola (IBDRY) - Iberdrola is reportedly preparing to sell up to 49% of its East Anglia Two project, valued at around EUR 5bln, according to Expansion.
• Imperial Oil (IMO) - Imperial Oil CEO John Whelan opposed Alberta separatism, saying a united Canada offers the strongest position for future challenges and opportunities. Alberta residents are due to vote on whether to hold an independence referendum. Whelan also backed efforts to double provincial oil production and said supportive policy could allow Imperial to double gross operated upstream output.

INDUSTRIALS:

• SpaceX (SPCX) - Director/COO Gwynne Shotwell registered intent to sell 342.2K shares via a Form 144 filing, as part of an option exercise; sale would have an estimated market value of about USD 52mln.
• HII (HII) - HII expanded its Pocasset, Massachusetts unmanned systems production campus by 10K square feet, increasing capacity by 25%.
• RTX (RTX) - Raytheon received a USD 105.6mln US Air Force contract modification for Advanced Medium Range Air-to-Air Missile parts.

MATERIALS:

• BHP (BHP) - Union leaders at BHP’s Escondida copper mine in Chile rejected the company’s latest wage proposal and urged members to vote for a strike. The sides remain far apart on pay, benefits, shift patterns and training requirements, with government mediation required before any legal strike can begin.
• Glencore (GLNCY) - Glencore signed a USD 1bln offtake agreement with Nth Cycle, under which Nth Cycle will supply lithium and other critical minerals recovered from recycled batteries, according to Reuters.

HEALTHCARE:

• Novo Nordisk (NVO) - CEO told the FT that the company is open to upgrading its US listing from an ADR to a direct NYSE listing, adding that he sees advantages to such a move.
• GE HealthCare (GEHC) - GE HealthCare raised its quarterly dividend +14% to USD 0.04/shr.
• AstraZeneca (AZN) - AstraZeneca said Trixeo was approved in the EU as a maintenance treatment for asthma in patients aged 12 years and older. Roche (ROP SW) - Roche said its Phase III IMAgINATION study of sefaxersen in adults with primary IgA nephropathy met its primary endpoint.
• EssilorLuxottica (ESLOY) - EssilorLuxottica heir Leonardo Maria Del Vecchio opposed Delfin’s request to delay transfers of family stakes into personal holding companies, Bloomberg reports. Delfin sought a six-month extension of pre-emption rights affecting Leonardo Maria, Clemente Del Vecchio and Rocco Basilico. A Luxembourg court is expected to rule by 29th September.